Muzaffarabad, May 9,2026: Serious allegations of collusion between the Azad Jammu and Kashmir (AJK) Inland Revenue Department and the illegal cigarette industry have surfaced, with claims that cigarette manufacturers involved in tax evasion are paying monthly bribes worth millions of rupees to continue operations in Mirpur Division, particularly in Bhimber.
According to sources, five cigarette factories operating in Bhimber are allegedly paying around Rs50 million per month as bribe , while an influential government minister and certain Inland Revenue officials are accused of providing protection to the network against financial benefits. Sources further claimed that several cigarette factories previously shut down over tax evasion and illegal activities in former Prime Minister Choudhary Anwar ul Haq tenure, have now been reactivated ahead of the upcoming AJK’s elections.
The sources alleged that secret arrangements and financial deals are being made with the cigarette industry to generate funds for election-related expenses. Allegations are also circulating that a senior government minister has been receiving up to Rs. 80 million per month in bribes linked to the illegal tobacco trade, while some Inland Revenue officials are allegedly facilitating the operations of non-duty-paid cigarette manufacturers.
Sources claimed that an influential political figure in AJK has been using the names of federal institutions to provide cover and operational relief to cigarette factories in order to block enforcement actions against them. It was further alleged that a few weeks ago, on the directives of the AJK Prime Minister, authorities raided an illegal cigarette manufacturing unit operating under the cover of a dairy farm. However, the same unit has reportedly resumed operations after few weeks of raid.
According to the allegations, non-duty-paid cigarettes are being smuggled from AJK into different parts of Pakistan through routes connecting Sialkot and Gujrat, causing billions of rupees in losses to the national exchequer.
Sources also claimed that former AJK Prime Minister Chaudhry Anwar ul Haq was previously offered Rs. 3 billion bribe by individuals linked to the illegal cigarette industry, but he refused to enter into any deal and facilitate illegal cigarette manufacturing factories.
According to sources, Defence Minister Khawaja Asif had earlier raised concerns in the National Assembly regarding alleged attempts by the illegal cigarette industry in AJK to influence and financially manipulate upcoming elections in AJK.
